Confusion surrounds Euronext’s withdrawal from a €5.5 billion bid for B2B wealthtech platform Allfunds.
The proposed takeover was first announced last week amid growing speculation about an impending bid. Euronext’s unsolicited offer for Allfunds’ entire issued share capital was priced at €8.75 per share, consisting of €5.69 in cash and 0.04059 new shares. This bid represented a 19% premium over the last closing price.
Following the announcement, Euronext’s share price fell sharply, losing 10% over six consecutive sessions, while Allfunds’ shares rose by 13%, increasing the company’s value to €5.2 billion.
Euronext stated that it withdrew the bid after conducting due diligence, a reason that Allfunds challenged, claiming the halt was due to Euronext’s “inadequate” terms. Euronext also mentioned that they had not received a formal rejection from Allfunds.
In response to the developments, the market reacted by reversing the earlier gains and losses: Euronext shares increased by 5%, while Allfunds shares decreased by 13%.
Allfunds, which went public on Euronext in 2021, has created a comprehensive ecosystem covering the entire fund distribution value chain and investment cycle through Allfunds Connect, which offers a suite of SaaS-enabled digital, data, and analytics tools. The firm collaborates with nearly 3,000 fund groups and manages over €1.3 trillion in assets.
Euronext’s lack of prior experience in the funds market could have posed significant challenges for integration, limiting the potential for cost-cutting synergies.